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Purpose: This study aims to examine the effect of business environment and company resources on digital innovation, and business performance, as well as the effect of business environment and company resources on business performance through digital innovation. Research Design: This study uses a quantitative research approach. Observations were made in a cross section/one shot, in 2022. The population of this study was the ISP industry in Indonesia, which amounted to 474 companies, and the unit of observation was the management. Samples were taken as many as 240 respondents. Testing the causality hypothesis in this study used Structural Equation Modeling (SEM) Results: the hypothesis testing show that: Business Environment and Company resources have a direct significant effect on business performance. Business Environment and Company resources play a significant role in developing digital innovation, but digital innovation does not have significant effect on business performance, and it’s make insignificant effect of business environment and company resources on business performance through digital innovation Findings: Improving business performance can be do it through optimizing company resources and anticipating changes in the business environment, while implementing digital innovation as a mediation of the relationship between the business environment and company resources on business performance does not have a significant impact. |
